An Algorithm for Setting the List Price of a Residential Real Estate Property

The market value of a residential real estate property may be considered as a function of its qualitative as well as quantitative characteristics. An algorithm is presented in this paper which incorporates the effects of the qualitative features by dividing the total housing population into several subpopulations, and calculates the influence of the quantitative variables by using a multiple regression technique. It also uses a computer-based adaptive process for incorporating the dynamic behavior of the market situation. The application of this algorithm is demonstrated with an empirical study.